How Nigeria is losing $1.5bn to monopoly in oil sector

How Nigeria is losing $1.5bn to monopoly in oil sector

- Snake Island Integrated Free Zone chairman said NPA's directive is responsible for the lose of $1.5 billion

- NPA had issued a directive that all oil and gas-related cargos must be handled only by the company’s terminal in Onne, Warri and Calabar

How Nigeria is losing $1.5bn to monopoly in oil sector

A seaport in Nigeria

With a fast dwindling economy, constant fuel crisis, emerging facts has shown that Nigeria is losing an estimated $1.5bn annually to a monopoly, which allows for the discharge of oil and gas-related cargos at a designated terminal belonging to a particular company.

This is according to the Chairman, Snake Island Integrated Free Zone, Anwar Jarmakani, who was quoted by Punch newspaper.

“Our oil and gas supply and logistics service is the most expensive in the world because of this entrenched monopoly. It adds an extra cost of $3-$5 per barrel produced in Nigeria, which translates into over $1.5bn per annum.

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“This monopoly seriously damages the international reputation of Nigeria. It has over the last 20 years used a non-existent law to justify its actions and coerce industry and service providers into doing its bidding and thereby undermining the Nigerian economy,” he said.

Anwar Jarmakani stated this while receiving the Comptroller General of Customs, Hameed Ali, and members of his management team during a visit to Nigerdock, a ship repair, fabrication, supply and logistics facility

Recall that the Nigerian Ports Authority had last year issued a directive, citing presidential order, that all oil and gas-related cargos must be handled only by the company’s terminal in Onne, Warri and Calabar ports.

Meanwhile, embattled immediate past minister of petroleum resources, Mrs Diezani  Alison-Madueke will today, April 5, make a return to the Westminster Magistrate’s Court in London to answer for money laundering and bribery allegations.

Recall that she was arrested along with four others by the United Kingdom’s National Crime Agency (NCA) over money laundering allegation.

Source: Naij.com

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